Week 40

03 October – 07 October

 

03 October

 

DoubleDragon Properties is one of the up-and-comers. Back in April 2014, when its valuation was less than $100m, the company listed on the Philippine Stock Exchange. In its first day of trading, the stock shot up by 50 per cent, hitting the bourse’s daily limit. Since then, it has continued to be a strong performer.

 

Leading cancer specialists in the UK and Ireland are aiming to build Europe’s leading oncology company backed by venture capitalists from the US and Europe.

 

African oil exporting countries, including Angola, Nigeria and Sudan, have squandered a decade’s worth of economic opportunity by failing to diversify or reinvest windfall profits into sustainable growth, according to research by the Mo Ibrahim Foundation.

 

Insurtech — or instech — is now attracting entrepreneurs and the investors that back them. “Quite a few entrepreneurs who have been in other areas of fintech have moved over to insurance,” says Matthew Wong of research company CB Insights.

 

04 October

 

The Bank of England’s trade-weighted sterling index has flopped to a post-financial crisis low, while Bloomberg’s sterling index, which tracks the pound against a basket of currencies, has slumped to an all-time low. The pound is down 0.8 per cent against the greenback at a new three-decade low of $1.2737.

 

After the FTSE Asia Pacific index rose 0.1 per cent, the pan-European Stoxx 600 is up 0.4 per cent. Energy stocks are lacking traction as the December Brent crude contract slips 0.6 per cent to $50.57 a barrel after closing overnight at a six-week high on hopes for an Opec-led production cut.

 

On Friday morning, three of the region’s biggest — Credit Suisse, Barclays and BNP Paribas — lost more than 4 per cent of their market value as investors’ concerns about Deutsche spilled over into the sector. All of them then rebounded on rumours that the German bank was close to settling with US enforcers over mortgage securities allegations. On Monday, the German exchange was closed for a holiday, but Deutsche’s US depository receipts fell a little, as did some of the European banks.

 

Political risk in advanced economies has emerged as the biggest threat to the global economy, the International Monetary Fund warned on Tuesday as it lowered its growth forecasts for the US and other rich economies.

 

05 October

 

Tuesday 21:00 BST. A turbulent day in the markets saw a late jump for the euro and German government bond yields vie for attention with a fresh drop for sterling and a big rally for the FTSE 100 as UK participants increasingly factored in a “hard Brexit” scenario.

 

Gold slumped 3 per cent to its lowest level since the UK vote to leave the EU as investors eye a US interest rate hike later this year and demand remains weak in India and China.

 

The FTSE 100 was within touching distance of its record high on Thursday as the pound’s continuing slump lifted dollar earners such as Pearson.

 

Ericsson, the Swedish telecoms equipment maker, confirmed that it would cut a fifth its workforce in its home market in the face of intensifying competition from rivals such as Nokia and Huawei.

 

06 October

 

Topps Tiles, the UK flooring specialist, has warned of weakening consumer confidence that dragged like-for-like sales growth to the lowest level for at least two years.

 

Investors, such as money market funds, can exchange cash for Treasuries overnight with the US Federal Reserve through its reverse repo program (RRP). Cash held by the Fed as part of the RRP hit a new 2016 high at the end of the third quarter on Friday, which typically sees increased use of the facility. But it has remained elevated ever since and is still above levels seen at the end of the second quarter, writes Joe Rennison in New York.

 

Shares in Samsung Electronics touched a record high on Thursday after activist fund Elliott Management launched a second assault on the South Korean group, calling for a split of its flagship electronics company and a $27bn payout to shareholders.

 

The world is $152tn in the red — a record-breaking level of debt, according to the International Monetary Fund.

 

07 October

 

Twitter shares dropped by a fifth in morning trading as leading Silicon Valley and US media companies’ interest in buying the company appeared to wane.

 

Jim Yong Kim has kicked off his second term as president of the World Bank with a plea for a capital increase, arguing that the lender needs greater financial resources to address a growing list of demands from shareholder governments.

 

The British pound suffered a sudden fall of more than 6 per cent against the US dollar early on Friday before recovering most of its losses, amid mounting concerns over the UK’s exit from the EU.

 

The dollar was off by 1 per cent against the yen in morning action in New York, after trading just slightly lower leading up to the data that showed the American economy added fewer jobs than expected last month.